The theft to the tune of Rs 4.04 crore by a private security guard from the currency chest of Axis Bank has put the affairs of currency chests in the spotlight. 

It is for the first time in Chandigarh when such a huge amount was stolen from inside a bank. 

What is currency chest? Which authority monitors it?

Currency chest is a place where the Reserve Bank of India (RBI) stocks the money meant for banks and ATMs. 

• These chests are usually situated on the premises of different banks but administrated by the RBI. 
• Representatives of the RBI inspect currency chests time-to-time, and update their senior officers about it. 
• The money present in the currency chest belongs to the RBI and the money, kept in the strong room outside the currency chest belongs to the bank.
• A bank may stock in the currency chest as per its Cash Balance Limit (CBL), which differs in every bank.

How is the loss recovered in case of a crime resulting in loss of cash?

As per the set guidelines, the bank, in which the currency chest is situated is liable to fulfill the loss of the currency chest.

• There are certain categories of the loss. 
• But in the cases of thefts, robberies and fraud from the currency chests situated within the bank premises, the bank is considered to be responsible.

What is the security arrangement for the chests?

The security of currency chests is the subject of the bank in which chests are situated. 

• The Reserve Bank of India (RBI) reimburses the security expenses to the bank as per the set norms.
• The expenses includes the cost of transportation of cash from one bank to another. 

Source: The Hindu